Facts of the Case

The petitioner, M/S Mukhram Naveen Kumar, challenged an order dated 04.02.2025 passed under Section 73 of the UP GST Act, 2017, and the subsequent appellate order dated 17.09.2025 dismissing its appeal as time-barred. The petitioner's grievance was that the date fixed for personal hearing preceded the date fixed for filing a reply to the show cause notice, and that no genuine opportunity of hearing was granted, an issue the petitioner submitted was already settled by the Division Bench in Mahaveer Trading Company vs. Deputy Commissioner, State Tax.

Issues Involved

  1. Whether an assessment order under Section 73 is sustainable where the personal hearing date fixed in the notice preceded the deadline for filing a reply.
  2. Whether an appeal dismissed on limitation grounds can stand where the underlying order suffers from this defect.

Petitioner's Arguments

  • No genuine opportunity of hearing was granted while passing the order under Section 73, since the date of personal hearing was fixed prior to the date for filing the reply.
  • This procedural defect was squarely covered by the binding Division Bench ruling in Mahaveer Trading Company, which held such orders unsustainable.

Respondent's Arguments

  • The Standing Counsel, on instructions, confirmed that the date of personal hearing was indeed prior to the date fixed for filing the reply.

Court Order / Findings

  • Reiterating the dictum in Mahaveer Trading Company, the Court held that fixing a personal hearing date earlier than the deadline for filing a reply defeats the very purpose of the hearing requirement under Section 75(4) and renders the resultant order unsustainable, particularly where corroborated by the department's own Office Memo acknowledging such systemic defects.
  • Both the order dated 04.02.2025 and the appellate order dated 17.09.2025 were accordingly quashed.
  • The matter was remanded to the assessing authority to pass a fresh order after giving a genuine opportunity of hearing to the petitioner.

Important Clarification

  • A hearing date fixed before the deadline to file a reply to a show cause notice is a fundamental procedural defect that vitiates the resulting Section 73 order, since the assessee is deprived of a meaningful opportunity to be heard on its own reply.
  • Departmental admissions of systemic non-compliance, such as an internal Office Memo flagging hearing-date sequencing errors across cases, strongly corroborate a finding of denial of natural justice in individual matters.

Sections Involved

  • Section 73, UP GST Act, 2017 - determination of tax not paid/short paid.
  • Section 75(4), UP GST Act, 2017 - mandatory opportunity of hearing before an adverse order.

Decision – In Favour of

Decided in favour of the assessee; both orders quashed and matter remanded for fresh adjudication.

Case Details

  • Court: High Court of Judicature at Allahabad, Lucknow Bench
  • Case No.: Writ Tax No. 1266 of 2025
  • Coram: Justice Jaspreet Singh
  • Date: 7th November, 2025

Link to Download the Order

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